Retail lending bounces back in June

According to preliminary data, the banks’ mortgage loan portfolio rose by 0.7% largely owing to the realisation of pent-up demand amid a decrease in interest rates. Unsecured consumer lending also began to recover (+0.2%) following a three-month decline. Corporate loans were still on the rise in rubles only, while foreign currency loans, on the contrary, continued to shrink, which is indicative of the current trend toward reducing reliance on foreign currency.

Household deposits continued to increase (+1.7%) though deposit rates were declining and expensive short-term deposits raised in March were approaching their maturities. Deposits and accounts of legal entities were stable (-0.1%).

More details are available in the information and analytical material Russian Banking Sector Developments in June 2022.